Wells Fargo & Co, JPMorgan Chase & Co and Lone Star Funds were the winning bidders on the $9.5 billion pool of U.S. commercial real estate loan sold by Anglo Irish Bank Corp. with debt related to some 250 properties, including marquee names ranging from the Apthorp, a landmark Manhattan residential building, to a Beverly Hills, Calif., shopping center to the Palmer House Hilton in Chicago according to a Wall Street Journal article. Other bidders included Blackstone Group LP, TPG Capital, Starwood Capital Group, Goldman Sachs Group Inc. and Deutsche Bank AG. The sale marks one of the biggest since the downturn in U.S. commercial real estate four years ago.
Anglo Irish Bank had been looking to unload the portfolio since the Irish government took control of the bank in January 2009. The bank had reported last week that it lost €101 million in the six months ended June 30th, far below the €8 billion loss it recorded for the same period last year.
According to Bloomberg, the trio will take on the portfolio of $9.65 billion in U.S. loans. It wasn't disclosed what the consortium bid for the assets, though some speculate 80 cents on the dollar would be a good price. "If you're looking at quality assets in good, strong markets, I'd say 80 cents on the dollar sounds pretty reasonable," said Tom Craig, founder of TSC Realty Partners, a commercial-property broker in Seattle who wasn't involved in the sale. "One of the barriers to entry on a big deal like this is how many people can put the capital together to buy this and close quickly."
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